Cofunds profits fall as L&G splashes cash after 'years of under-investment'

Cofunds' pre-tax profits for 2013 have fallen 16% after a rise in assets under administration was offset by L&G's attempt to reverse 'years of under-investment'.

Having been acquired by Legal & General for £131m last year, the platform - like competitors - has converted its business model in order to operate in the new, commission-free world. As part of this, the platform saw administrative expenses climb from £72m to almost £79m last year, offsetting an increase in turnover from £74m to £80m. The platform saw AUA grow from £47.6bn to £64.1bn by the end of 2013. Stripping out market moves, net flows for the year were £10.1bn, the platform said. Total pre-tax profit for the year fell to £4.2m, down 16% from £5m in 2012. Pre-tax profit exclud...